DocuSign Raises $85 Million at $1.6 Billion Valuation

DocuSign, an electronic-signature software company, has raised $85 million from institutional investors, according to two people briefed on the matter. The fundraising values the company at roughly $1.6 billion, another person briefed on the matter said.

The San Francisco company, which has previously raised more than $100 million in venture capital, is aggressively raising money as it rapidly builds out its e-signature business. DocuSign is set to open several new offices abroad and add hundreds of new employees this year, after roughly doubling its headcount to 650 people last year.

The fundraising is also seen as a possible precursor to an initial public offering. In December, the company’s chief financial officer, Mike Dinsdale, told the Wall Street Journal that DocuSign wasn’t a takeover target but rather an IPO candidate, though he didn’t disclose a possible timeline for a debut.

DocuSign and many of its technology peers seem to be taking advantage of an opportune time to either raise money or go public.

DocuSign’s mounting warchest will help it expand its share of the e-signature market, where it competes with tech giant Adobe, which acquired competitor EchoSign in 2011. According to the company, DocuSign has more than 48 million customers.

DocuSign hired Morgan Stanley to help with its fundraising, according to people with knowledge of the matter.